Homeowners in Washington Can Benefit From a Refinance in 2021

November 6, 2018
Last updated:
November 9, 2021
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Mortgage rates have been on a decline for a couple of years, and that has increased the benefits of a mortgage refinance for homeowners in Washington.

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When mortgage rates fall, this presents a prime opportunity for homeowners to refinance their mortgages and take advantage of much lower rates. In turn, this can save them tens of thousands of dollars or more over the duration of their mortgage.

And based on how low mortgage interest rates are today, now may be a great time to capitalize on low rates and save by refinancing.

Homeowners in Washington Can Benefit From a Refinance

When mortgage rates decline, it might make sense to refinance. The financial benefits of refinancing can depend on several factors. The homeowner’s current mortgage rate, the rate assigned to the new loan, and the length of time you plan to say in the home all play a role.

Over recent weeks, refinancing has boomed in Washington and across the nation as mortgage rates have continued to plummet. Rates have hit record lows multiple times over the past year. And as of mid-November 2021, they still remain extremely low.

Right now, the average mortgage interest rate for a 30-year fixed-rate mortgage is 3.09%, according to Freddie Mac.

In fact, refinancing has been so popular among homeowners as a result of low rates that lenders have been having a tough time keeping up with the demand.

Many people with an existing home loan don’t realize what position they are in, as far as interest rates and refinancing go. Or maybe they don’t think about it at all. But while rates remain low, homeowners may want to consider the opportunity to refinance to save a bundle.

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An Updated Look at Mortgage Rate Trends

At the same time last year in November 2020, the average rate for a 30-year fixed mortgage loan was 2.78%. That’s based on the weekly industry survey conducted by Freddie Mac. Rates have been increasing steadily through the year, though they still remain very low.

That’s where we are now, as of mid-November 2021. Looking forward, some economists and analysts have predicted that rates will remain low throughout 2022, but may end off the year 2022 at around 4.0%. But there’s no way of knowing for sure. A lot could change between now and then.

Refinancing usually works best as a long-term strategy. There are typically closing costs involved, just as there are with a purchase loan. So the idea is to save more money over the long term than what you pay in processing / closing fees. The point at which this occurs is known as the break-even point.

If you’re a homeowner in Washington, and you’re currently paying on a mortgage loan, you owe it to yourself to look into the potential for savings. Depending on your situation, you might be one of those homeowners with an interest rate incentive to refinance.

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Looking to Refinance in Washington?

If you are considering refinancing your mortgage, Sammamish Mortgage can help. We are a local, family-owned company based in Bellevue, Washington. We serve the entire state, as well as the broader Pacific Northwest region that includes Idaho, Colorado, and Oregon. We have been offering a wide variety of mortgage programs and products with flexible qualification criteria since 1992. Please contact us if you’d like to find out if you could benefit from refinancing your existing mortgage.

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